Porsche is to begin trials of its own synthetic fuel, developed for use with unmodified combustion engines.
The new fuel promises to be “cleaner” with around 85 per cent reduction in CO2 output.
Porsche claims it will produce the same level of CO2 produced in the manufacture and use of an electric vehicle despite using a traditional internal combustion engine.
Porsche boss Frank Woliser said: “Synthetic fuels are very important to allow us to reduce our CO2 output.
“Emissions are way better than current pump fuel, with less particulates and less NOx produced; synthetic fuels have between eight to ten components whereas petrol today has 30-40 and not all of them are welcome.
“Synthetic fuel is cleaner and there is no bi-product and when we start full production we expect a CO2 reduction of 85 per cent.
“From a ‘well to wheel’ perspective – and you have to consider the well to wheel impact of all vehicles – this will be the same level of CO2 produced in the manufacture and use of an electric vehicle.”
The new fuels could be available in small volumes for customers from next year.
Porsche announced the new fuel ahead of the unveiling of its new 911 GT3.
The development of the new fuel is a divergence to many other carmakers who have confirmed a plans to stop producing the traditional internal combustion engine.
Mr Walliser added: “If we could decide if there was an end to the normally aspirated engine, we would of course say no.
“But it’s in the hands of the regulations.
“It’s not finally decided but it gets tougher every generation.
“What we did now with the engine was really, really demanding.
“We really stretched everything to achieve it.
“You can see it in our competition, the number of big normally aspirated engines is extremely low.
“And if you look at high-revving engines like this, sold in relatively high numbers like we do, it’s difficult. It gives us sleepless nights.”
Porsche has partnered with Siemens Energy to help produce the new fuel.
Around 130,000 litres of their new e-fuel could be produced by 2022 before production is dramatically increased.
The venture aims to produce up to 55 million litres a year by 2024 and the 550 million litres a year by 2026.